PESHAWAR, Oct 25: The NWFP government on Saturday formally set up a new department to exploit and develop natural resources including hydropower generation, oil and gas of the province.

A notification issued by NWFP Establishment Department said that the new entity was named as Energy and Power Department that would work as a separate provincial department to look after the three main natural resources of the province.

Creation of a new department for hydel power generation, oil and gas was on the cards since long as the government intended to consolidate efforts for exploitation of energy resources, which was still a neglected area in terms of institutional mechanism, said an official.

The ANP-led coalition government had set up a committee headed by additional chief secretary to work out modalities for the new department, as on compilation of its recommendations a formal notification was issued here on Saturday, paving way for its establishment.

NWFP is blessed with immense potential of hydropower production, as the government can easily generate 28,000MW electricity through setting up small hydel stations at various places. Out of this only 3,945 MW has been exploited mainly because of lack of pragmatic approach.

Similarly, the province also has huge deposits of oil and gas in its southern parts including districts Kohat and Karak, which can open another avenue for resource mobilisation for cash-strapped provincial government.

The new department, according to notification, will look after matters under articles 154, 157, 158 and 161 of the 1973 Constitution and framing policies for the province in their respect. These clauses of the constitutions deal with electricity, oil and gas generation.

Similarly, it will be responsible for issuing and canceling of licences to the private electric undertaking, certificates of competency to electrical supervisors and licences to electric contractors under the Electricity Act, 1910, levy and collection of electricity duty under West Pakistan Finance Act, 1964, monitoring of tariff of Peshawar Electric Supply Company and other power distribution companies for regulation of tariff.

The new department will take over the administrative control of Sarhad Hydel Development Organisation, which is currently serving under NWFP Irrigation Department.

Likewise, all maters pertaining and auxiliary to hydel power stations of Wapda or any other public or private sector agency located in NWFP, advising the provincial government on thermal, solar, wind, coal, nuclear and any other kind of renewable energy generation, coordination with the federal government in respect of grant of licences for oil and gas exploration in NWFP and cooperation with such companies and organisations undertaking such ventures in NWFP will be its main functions.